Construction company: TIF-backed housing project on track despite cash flow challenges
Days after Sioux Falls awarded Nielson Construction a tax break, company told vendors that market challenges would slow payments
A planned housing development backed by a first-of-its-kind tax break from Sioux Falls City Hall is on track despite market uncertainty placing challenges on the project developer.
The Sioux Falls City Council in mid-October awarded a $2.1 million tax increment financing package to Nielson Construction in support of a 65-unit residential development. In exchange, the company promised to sell the home at “accessible” pricing that reflects first-time homebuyer levels.
But an email sent days later by the company to dozens of its vendors and subcontractors alerting them of cash flow issues raised questions about whether the project would happen.